Fixed-Rate Mortgage 

A mortgage with a set interest rate that never changes throughout the life of your loan. Most fixed-rate mortgages have 30-year and 15-year repayment terms. These loans offer buyers a level of consistency that many others do not.

Best for homebuyers who...
want a predictable, lower monthly payment amount that remains for the life of the loan.

Adjustable-Rate Mortgages (ARMs)

ARMs can be a good option to get a lower upfront rate than a fixed-rate mortgage. After the fixed period, the interest rate on an ARM becomes variable and changes at regular intervals to reflect the most current market conditions.

Best for homebuyers who...
don’t intend to own the property longer than the fixed period, and/or who expect interest rates to decline in the future.

A conventional loan includes any mortgage type that’s not part of a specific government program such as the FHA, VA or USDA (more on these government-backed loans below). While more cost-effective than other loan options for those who qualify, a conventional loan typically requires that borrowers have a credit score of at least 620, along with a minimum down payment amount. The conforming loan amount limits for 2023 are $726,200.

Conventional 97% LTV

• Available to first-time homebuyers purchasing a single-family or condo unit as their primary residence

• Cancellable PMI at 20% equity

• No income limits

Best for homebuyers who...
have good credit and a higher income than is allowed by HomeReady.

HomeReady®

• Down payments as low as 3%

• Minimum FICO score of 620

• More favorable mortgage insurance requirements than FHA

Best for homebuyers who...
have better credit and want to purchase a more expensive home than is allowed by FHA limits.

Government insured mortgages, such as FHA, VA, and USDA loans, play a significant role in the housing market by providing accessible financing options for homebuyers. These mortgage programs are backed by government agencies and offer various benefits to borrowers, making homeownership more attainable for individuals and families. 

By offering government-backed insurance, these mortgage programs encourage lenders to extend loans to borrowers who may not meet conventional lending standards. This support enables more individuals and families to fulfill their dreams of owning a home while stimulating the overall housing market. 

Let’s take a closer look at each of these programs:

FHA 

• Credit scores as low as 500

• Down payments as low as 3.5%

• Requires mortgage insurance

• Higher Debt-to-Income Ratios Allowed

Best for homebuyers who...
have lower credit scores or are not able to make a 20% down payment.

VA

• Available to military service members and veterans

• Requires no down payment and no mortgage insurance

• Requires a VA funding fee based on the value of the property

• Up to 100% financing with NO down payment required

Best for homebuyers who...
are qualified military service members looking for lower interest rates or mortgage loans with no down payment.

USDA

• Restricted to rural locations

• Income and property value caps

• Require no down payment

• Available for home improvement loans as well

Best for homebuyers who...
live in qualifying rural areas seeking a loan without a down payment.

Jumbo loans are a type of mortgage that go beyond the limits set by government-sponsored enterprises like Fannie Mae and Freddie Mac. These loans are designed to help finance high-priced properties that require larger loan amounts. Unlike conventional loans, jumbo loans provide borrowers with the flexibility to purchase luxurious homes and investment properties beyond the standard conforming loan limits. However, they often come with stricter qualification requirements and higher interest rates due to the increased risk for lenders. Whether it’s a dream home or a lucrative investment, jumbo loans offer a pathway to acquiring properties that exceed typical financing limits.

Down payment assistance loans are financial resources designed to help individuals and families overcome the upfront costs associated with purchasing a home. These loans provide a way to bridge the gap between the funds available for a down payment and the total amount required by lenders. By offering financial support, down payment assistance loans make homeownership more accessible and attainable for those who may otherwise struggle to save up for a down payment.

TSAHC

• Credit scores as low as 620

• Down payments assistance of up to 5% of the loan amount

• Requires mortgage insurance

• Grant and 2nd lien options

• Government and Conventional options

Best for homebuyers who...
have lower credit scores or are not able to make a 20% down payment.

ONE +

• 2% grant, 1% down payment

• No mortgage insurance requirement

• Loan amount limit of $350,000

• Up to 80% of area median income

  1. • Can use only base income for eligibility

     • FNMA Area Median Income Lookup

Best for homebuyers who...
who are under the income limits and need assistance with down payment or closing costs

Investment loans are a type of loan that individuals use to acquire funds for purchasing real estate. These loans are specifically designed for buyers who are looking to purchase investment properties and generate income through cash flow, appreciation, and prinicple balance reduction. By obtaining an investment loan, individuals can access the necessary capital to purchase properties that they believe will appreciate in value over time or generate rental income. 

Agency - Fannie Mae or Freddie Mac

• 20% down payment

• Can use projected rental income of appraised value

  • • A special appraisal will be ordered where the appraiser determines the "fair market rental value"

Best for homebuyers who...
who want to purchase an investment property

DSCR

• No income requirement

• 20% down payment

• Rental valuation must be at least 1% higher than PITI payment

Best for homebuyers who...
want to purchase an investment property without providing income documents